Determinants of different financing sources by producers in soybean production in Central and North-Eastern Benin

Abstract

Socio-economic inequalities among producers and the inadequacy of the services provided by microfinance institutions to rural populations influence the financing problem of soybean production. This research analyzes the factors influencing the different sources of financing in the soybean sector in the Agricultural Development Pole 4 (PDA4) in Benin. Data were collected using questionnaires administered to 720 soybean producers randomly selected. A multivariate Probit model was estimated to identify factors influencing the adoption of agricultural finance sources. The results show that the sex of the producer (male) and the training significantly influence the use of self-financing by soybean producers. The producer's membership of an organization, his contact with an extension service and the use of chemical fertilizers significantly affected his use of an external source of funding. The use of mixed finance option is positively and significantly influenced using inoculum and experience in soybean production. Therefore, organizations around the soybean sector will be able to use the results of this research to strengthen the sustainability of the soybean sector in Benin.

Keywords: Adoption, agricultural financing, soybean sector, Probit Multivarié, ATDA4-Benin